Bank of America (BAC) Suffers a Larger Drop Than the General Market: Key Insights

Group 1 - Bank of America (BAC) stock closed at $45.30, reflecting a -1.54% change from the previous day, underperforming compared to the S&P 500's loss of 0.43% [1] - Over the past month, BAC's stock has increased by 0.48%, which is lower than the Finance sector's gain of 3.13% and the S&P 500's gain of 2.6% [1] Group 2 - The upcoming earnings report for Bank of America is expected to show earnings of$ 0.81 per share, indicating a year-over-year decline of 2.41%, while revenue is projected to be $26.71 billion, a 3.47% increase from the same quarter last year [2] - Full-year Zacks Consensus Estimates predict earnings of$ 3.69 per share and revenue of $108.38 billion, representing year-over-year changes of +12.5% and +6.37% respectively [3] Group 3 - Recent modifications to analyst estimates for Bank of America are important as they reflect changing near-term business trends, with positive revisions indicating a favorable business outlook [4] - Empirical research shows a direct correlation between estimate revisions and stock price performance, leading to the creation of the Zacks Rank system, which integrates these changes [5] Group 4 - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with stocks rated 1 delivering an average annual return of +25% since 1988; currently, Bank of America holds a Zacks Rank of 3 (Hold) [6] Group 5 - Bank of America is currently trading at a Forward P/E ratio of 12.45, which is lower than the industry average Forward P/E of 14.89, suggesting it is trading at a discount [7] - The company has a PEG ratio of 1.24, compared to the Financial - Investment Bank industry's average PEG ratio of 1.16, indicating a competitive valuation [8] Group 6 - The Zacks Industry Rank measures the strength of industry groups, with the Financial - Investment Bank industry currently holding a Zacks Industry Rank of 3, placing it in the top 2% of over 250 industries [9]